PEORIA — Gary Matthews appears to have acknowledged a mistake. The Peoria City Council has given him a chance to rectify it.

By a 9-2 vote Tuesday night, the council approved the management change Matthews proposed for the Downtown Peoria hotel project his firm developed.

Approval comes with conditions designed to keep city officials up to date about the hotels’ financial performance and other issues. The $100 million renovation of the Marriott Pere Marquette and construction of the adjacent Courtyard by Marriott included about $36 million in city money.

“I think we’re in a position right now where we feel this provides an adequate level of control for the city,” City Manager Patrick Urich said following a special meeting that lasted more than an hour.

At midnight July 18, Rosemont-based First Hospitality Group is to replace Marriott International Inc. as manager. The Courtyard also is to open that day, according to Matthews.

The East Peoria-based hotel developer said he was dissatisfied with the management performance of Marriott, located in suburban Washington, D.C. Although Matthews praised the Marriott brand, which both hotels will retain, he suggested the corporation’s management style isn’t a good fit for Peoria.

Matthews would not delve into specifics about his objections. But he did say local hiring and cooperation with the nearby Peoria Civic Center could have been handled better.

FHG is expected to rectify that.

“Marriott has tried very, very hard,” Matthews said. “It’s difficult if you don’t know the community. Now we think we have a group that knows the community and will perform.”

The leader of that group is to be Joe LoMonaco, who was the original general manager of the Embassy Suites in East Peoria. In recent years, he managed convention-center-related lodging in Oklahoma City.

LoMonaco cited his community knowledge and relationships with officials from the Civic Center and the Peoria Area Convention and Visitors Bureau.

“I think we’ll be able to work as a team,” he said. “I think some of that might have been missing. Because of those relationships, I think we’ll be able to move quicker and bring larger events into the city.”

Peoria Mayor Jim Ardis was effusive in praise of LoMonaco and the management switch — which has received Marriott’s blessing, according to Urich.

“I don’t look at FHG like we’re getting a B team here,” Ardis said. “In hindsight, they probably should have been the first one to be considered. I think they’re going to prove a lot of people’s skepticism wrong. And we’re going to hold them accountable.”

Page 2 of 2 - The accountability includes monthly management reports delivered to the city, Urich said. The city also will require 30 days’ notice of a possible ownership change and immediate notice of possible default.

Matthews and associated partners and firms face foreclosure proceedings and lawsuits regarding some of their properties. He did not address that topic Tuesday.

Jim Montelongo and Chuck Weaver were the only council members to vote no. Weaver had proposed a three-person panel that included city representation oversee the hotels, but legal issues apparently render that problematic.

“I’m concerned about what he’s going through, and I hope he’ll be successful in that,” Weaver said about Matthews, “but you have to think about scenarios in the event there are problems, that we can react quickly.”

Nick Vlahos can be reached at 686-3285 or nvlahos@pjstar.com. Follow him on Twitter @VlahosNick.